Loading...
HomeMy WebLinkAbout7A Amend 704.500 and 705.600 re Sewer and Water Fee Deferral (PRI p ti u to 4646 Dakota Street SE Prior Lake. MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: May 27, 2014 AGENDA #: 7A PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT SPECIALIST PRESENTED BY: DAN ROGNESS, COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE AMENDING SUBSECTIONS 704.500 AND 705.600 OF THE CITY CODE RELATED TO THE SEWER AND WATER FEE DEFERRAL PROGRAM DISCUSSION: Introduction The purpose of this agenda item is to consider amendments to Subsections 704.500 and 705.600 of the City Code related to the sewer and water fee deferral program due to changes in the Metropolitan Council's program. History On February 11, 2013 the Prior Lake City Council approved an ordinance (Ord. 113 -04) amending Subsections 704.500, 705.600 and 705.1002 of the City Code relating to deferral of certain water connection, sewer connection, water tower charges and Metropolitan SAC (SAC refers to Sewer Availability Charge) charges for economic development purposes. The purpose of the ordinance was to amend the City Code to mirror a recently approved Metropolitan Council SAC Deferral Program which allows for the deferment of SAC fees for small businesses that received SAC determinations of 10 units or less. In addition to approving the ordinance, the City Council also approved the City of Prior Lake Sewer and Water Fee Deferral Program Policy, which amended the city's previous sewer and water fee payment program to mirror the Metropolitan Council program. Current Circumstances During its January 22, 2014 meeting, the Metropolitan Council adopted changes to the SAC deferral program in an effort to encourage and help communities promote business development. The revised agreement language will allow businesses with a SAC determination of 25 units or less, before application of credits, to be eligible for the program. The previous agreement language only allowed those businesses with a SAC determination of 10 units or less, before application of credits, to be eligible. On February 11, 2013 the City Council approved an ordinance amending sections 704.500, 705.600 and 705.1002 of the City Code relating to deferral of certain water connection, sewer connection, water tower charges and Metropolitan SAC charges for economic development purposes. The ordinance deleted City Code language related to a previous program which allowed the payment of city sewer and /or water fees over three years at an interest rate of 8.0% and added language to mirror the Metropolitan Council SAC program. The current ordinance language in Subsections 704.500 and 705.600, related to payment of fees, references a maximum SAC unit determination of ten (10) units. These Subsections will need to be amended to reference a maximum SAC unit determination of twenty -five (25) units if the City Council wishes to mirror the recently adopted changes to the Metropolitan Council SAC deferral program. Conclusion Now that the Metropolitan Council has adopted changes to its SAC deferral program it is necessary for the City Council to amend the City Code if they wish to continue to mirror the Metropolitan Council program. The attached ordinance will remove the references to ten (10) SAC units replace with twenty -five (25) SAC units. ISSUES: In addition to considering amendments to Subsections 704.500 and 705.600 of the City Code, the City Council will need to consider 1) authorizing the Mayor and City Manager enter into the revised Master SAC Deferral Agreement with the Metropolitan Council; and 2) approval of amendments to the City of Prior Lake Sewer and Water Fee Deferral Program Policy to mirror the Metropolitan Council SAC Deferral Program. These additional actions will be considered under agenda item 10A at this meeting. FINANCIAL As noted in the staff report for Agenda Item 10A, additional information related IMPACT: to program funding may be presented to the City Council at a later date based on a funding change request of the EDA. ALTERNATIVES: 1. Motion and a second approving an ordinance amending Subsections 704.500 and 705.600 of the Prior Lake City Code. 2. Motion and a second to table the item for a specific purpose. RECOMMENDED Alternative #1 MOTION: ATTACHMENTS: 1. Proposed changes to Subsections 705.500 and 705.600 (redlined) 2 O , PRI u rl 4646 Dakota Street SE ,,#) Prior Lake, MN 55372 41 INrvESO P CITY OF PRIOR LAKE ORDINANCE NO. 114 -XX AN ORDINANCE AMENDING SUBSECTIONS 704.500 AND 705.600 OF THE PRIOR LAKE CITY CODE RELATING TO DEFERRAL OF CERTAIN WATER CONNECTION AND SEWER CONNECTION CHARGES AND METROPOLITAN SAC CHARGES FOR ECONOMIC DEVELOPMENT PURPOSES The City Council of the City of Prior Lake does hereby ordain that: 1. Prior Lake City Code Subsection 704.500 is hereby amended as follows: 704.500: PAYMENT OF PERMIT FEES: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay water connection charges or water tower charges may do so as follows: (2) a) Fees of at least three (3) and no more than twenty -five (25) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): b) Fees greater than twenty -five (25) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 705.600: PAYMENT OF PERMIT FEES: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay sewer connection charges may do so as follows: (2) a) Fees of at least three (3) and no more than twenty -five (25) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): b) Fees greater than twenty -five (25) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 27th day of May, 2014. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com ATTEST: Frank Boyles Kenneth L. Hedberg City Manager Mayor Published in the Prior Lake American on the 7th day of June, 2014. 704.500: PAYMENT OF PERMIT FEES: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay water connection charges or water tower charges may do so as follows: (1) Payment in full of all water connection charges and water tower charges at the time of permit issuance; or (2) If the person meets the eligibility requirements of the City of Prior Lake's Sewer and Water Fee Deferral Program Policy, deferred monthly payment of up to eight (80) percent of the fees due within sixty (60) consecutive months from permit issuance as follows: a) Fees of at least three (3) and no more than twenty - fiveten (251 -0) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20) percent of the total water connection charges and water tower charge shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city's automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be the rate set forth in the Metropolitan Council Small Business SAC Deferral Program for the year the permit is issued. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. b) Fees greater than twenty - fiveten (2510) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20 %) of the total water access charges and water tower charge shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city's automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be determined using a rate of two (2) percentage points higher than the net interest cost of the most recent bonds sold by the city. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. 705.600: PAYMENT OF PERMIT FEES: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay sewer connection charges may do so as follows: (1) Payment in full of all sewer connection charges at the time of permit issuance; or (2) If the person meets the eligibility requirements of City of Prior Lake's Sewer and Water Fee Deferral Program Policy, deferred monthly payment of up to eight (80) percent of the fees due within sixty (60) consecutive months from permit issuance as follows: a. Fees of at least three (3) and no more than twenty- fiveten (2510) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20) percent of the total sewer connection charges shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city's automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be the rate set forth in the Metropolitan Council Small Business SAC Deferral Program for the year the permit is issued. 4. Deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest and applicable fees shall become immediately due and payable. The balance plus interest shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. b. Fees greater than twenty- fiveten (251 -0) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20 %) of the total sewer connection charges shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city's automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be determined using a rate of two (2) percentage points higher than the net interest cost of the most recent bonds sold by the city. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral.